Authored by the expert who managed and guided the team behind the Panama Property Pack
Everything you need to know before buying real estate is included in our Panama Property Pack
Panama remains one of the most foreigner-friendly property markets in Latin America as we enter 2026, but the rules are not quite as simple as some real estate agents make them sound.
Foreigners can generally buy residential property with rights almost identical to locals, though there are key geographic restrictions and compliance hurdles that can trip up unprepared buyers.
This guide breaks down exactly what you can and cannot do as a foreign buyer in Panama in early 2026, with real data and authoritative sources to back every claim.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Panama.
We constantly update this blog post to reflect the latest legal developments and market conditions in Panama.
Do foreigners have the same rights as locals in Panama right now?
Can foreigners legally buy residential property in Panama in 2026?
As of early 2026, foreigners can legally purchase residential property in Panama with ownership rights that are nearly identical to those of Panamanian citizens, making Panama one of the most accessible real estate markets in Latin America for international buyers.
Foreign buyers in Panama can purchase titled properties including houses, condominiums, apartments, and undeveloped land with clear titles, as long as they are outside of restricted zones.
The key thing to understand is the difference between "titled property" (finca with registered title in the Public Registry) and "rights of possession" (derecho posesorio), which is a legally riskier form of ownership that lacks full protection.
Condominiums, governed by the Propiedad Horizontal framework (Law 284), are especially popular among foreign buyers in urban areas like Panama City because they come with clear titles and defined building rules.
We cover all these things in length in our pack about the property market in Panama.
Do foreigners have the exact same ownership rights as locals in Panama in 2026?
As of early 2026, foreigners enjoy broadly similar private-law rights as Panamanian citizens for most residential property transactions, meaning they can buy, sell, inherit, and mortgage titled property in permitted areas.
The single most significant difference is geographic: Panama's Constitution explicitly prohibits foreigners (and companies with foreign capital) from acquiring property within 10 kilometers of international borders with Costa Rica and Colombia.
Outside of these restricted border zones and indigenous territories, foreigners and locals share equal rights to register property in their own name, obtain mortgages, pass property to heirs, and resell without special permits.
Are there any foreigner-only restrictions in Panama in 2026?
As of early 2026, there is one major constitutional restriction and a few secondary rules that specifically apply to foreigners buying property in Panama.
The most impactful restriction is the "10 km border zone rule," which prohibits foreigners from purchasing titled land within 10 kilometers of Panama's borders with Costa Rica and Colombia, a rule rooted in national security concerns.
The official rationale for this restriction comes directly from Panama's Constitution, which aims to protect national sovereignty by limiting foreign ownership near sensitive border areas.
The most common legal workaround is to purchase through a properly structured Panamanian corporation, though this is not a true loophole since beneficial ownership must now be disclosed under Law 129, Panama's beneficial owner registry regime administered by the SSNF.
Can foreigners buy property freely anywhere in Panama, or only specific areas in 2026?
As of early 2026, foreigners can purchase property in most of Panama, including all major urban centers and popular coastal areas, with the notable exception of the 10 km border zone and indigenous territories (Comarcas).
The restricted zones include properties near the Costa Rica border (parts of Chiriqui and Bocas del Toro provinces) and the Colombia border (parts of Darien province), as well as collectively owned indigenous lands like Guna Yala, Embera-Wounaan, and Ngobe-Bugle territories.
These restrictions exist primarily for national security and indigenous rights protection, and they affect a relatively small percentage of properties that foreign buyers typically target.
The most popular areas where foreigners freely purchase property in Panama include Panama City neighborhoods like Punta Pacifica, Costa del Este, San Francisco, Bella Vista, El Cangrejo, Marbella, Coco del Mar, Santa Maria, Clayton, Albrook, and Casco Viejo, as well as beach areas like Coronado, Playa Blanca, Buenaventura, San Carlos, and the mountain town of Boquete.
Can foreigners own property 100% under their own name in Panama in 2026?
As of early 2026, foreigners can take title to residential property 100% in their own personal name in Panama, with no requirement for a local partner, spouse, or corporate structure in most areas.
Titled properties that foreigners can register fully under their own name include houses, condominiums, apartments, and land with clear titles outside of the restricted border zones and indigenous territories.
The documentation process requires registering the property with Panama's Public Registry (Registro Publico), which involves submitting a public deed (escritura publica) prepared by a notary, along with your passport, and paying the applicable transfer tax and registration fees.
Is freehold ownership possible for foreigners in Panama right now in 2026?
As of early 2026, freehold ownership (full titled ownership with no expiration date) is available to foreigners for residential property in permitted zones, making Panama one of the few Latin American countries where this is straightforward.
The key difference between freehold and leasehold in Panama is that freehold means you own the property outright and it is registered in your name at the Public Registry, while leasehold or concession arrangements (more common for certain coastal or island properties) involve time-limited rights that may need renewal.
When freehold is not available, such as for certain beachfront or island properties, foreigners often use concession arrangements or purchase through companies, though these come with different risk profiles and should be reviewed carefully with a lawyer.
Can foreigners buy land in Panama in 2026?
As of early 2026, foreigners can legally purchase titled land in Panama with the same rights as locals, except for land within the 10 km border zone and indigenous territories.
For residential land, there are no restrictions on foreign ownership as long as the land has a clear title and is located outside the restricted areas; agricultural and commercial land follow similar rules, though some agricultural ventures may involve additional permits.
When direct ownership is restricted, such as in border zones or for certain islands, the most common legal structure foreigners use is a Panamanian corporation, but since Law 129 of 2020, beneficial ownership must be disclosed to the SSNF registry, eliminating the anonymity that used to attract some buyers.
By the way, we cover everything there is to know about the land buying process in Panama here.
Does my nationality or residency status change anything in Panama?
Does my nationality change what I can buy in Panama right now in 2026?
As of early 2026, Panama does not generally differentiate property ownership rights based on your passport, meaning a buyer from the US, UK, Germany, or Colombia faces the same rules when purchasing residential property.
There are no specific nationalities that face additional property purchasing restrictions in Panama beyond the general rules that apply to all foreigners, though buyers from countries under international sanctions may face banking and compliance hurdles.
There are also no bilateral agreements that give certain nationalities preferential treatment for property purchases, though residency programs like the Friendly Nations Visa (available to citizens of about 50 countries including the US, Canada, and most EU nations) can make the overall relocation process smoother.
Do EU/US/UK citizens get easier property access in Panama?
EU, US, and UK citizens do not receive any formal legal advantages when buying property in Panama, as the same ownership rules apply to all foreign nationals regardless of country of origin.
EU citizens do not have specific advantages over other foreign buyers in Panama, though citizens of EU countries included in the Friendly Nations Visa list can access a faster residency pathway if they choose to relocate.
US and UK citizens similarly have no special property purchase privileges, but they often experience smoother banking and compliance processes because they can more easily provide standardized income documentation, recognizable bank references, and internationally verifiable source-of-funds trails.
If you're American, we have a dedicated blog article about US citizens buying property in Panama.
Can I buy property in Panama without local residency?
Non-residents and tourist-visa holders can legally purchase property in Panama, as there is no requirement to have residency status to complete a real estate transaction.
Residents do have a few practical advantages over non-residents, primarily in mortgage access: some banks offer better terms to residents, and non-residents may be required to pay the FECI surcharge (1% per year) on their mortgage if they don't have permanent residency.
Tourist-visa holders need to provide their valid passport, proof of funds, and comply with standard AML/KYC documentation requirements, but the purchase can be handled remotely through a power of attorney if you cannot be present for the closing.
Please note that we give you all the details you need about the different pathways to get residency and citizenship in Panama here.
What are the biggest legal grey areas for foreigners in Panama?
What are the biggest legal grey zones for foreigners in Panama in 2026?
As of early 2026, there are three main legal grey zones that create problems for foreign property buyers in Panama: possession rights (derecho posesorio) marketed as ownership, unclear coastal/maritime property classifications, and condo (PH) administration disputes.
The single most risky grey zone is buying "rights of possession" (ROP) property under the assumption that it provides the same security as titled ownership, when in fact possession rights can be legally challenged and are difficult to finance or resell.
The best precaution a foreigner can take is to insist on purchasing only titled property verified through a Public Registry search, and to hire an independent real estate attorney who represents your interests (not the seller's) to conduct thorough due diligence before signing anything.
We have built our property pack about Panama with the intention to clarify all these things.
Can foreigners safely buy property using a local nominee in Panama?
Using a nominee (a local person who holds the title "for you" under a private agreement) is one of the riskiest arrangements a foreign buyer can enter into in Panama, because your ownership depends entirely on the nominee's willingness to honor the deal.
The main legal risk of using a non-spouse nominee is that if the relationship breaks down, if the nominee dies, or if the nominee's creditors make claims, you may have no enforceable legal path to recover the property because the title is in their name.
Buying through a local spouse provides slightly more protection under Panama's marital property laws, but it still creates dependency risk and should be paired with clear legal agreements reviewed by an attorney who understands both family law and real estate.
Buying through a properly structured Panamanian corporation is a safer and more transparent alternative, though under Law 129 of 2020, beneficial ownership must be disclosed to the SSNF registry, so it is no longer an anonymity tool.
What happens if a foreigner dies owning property in Panama?
When a foreigner dies owning property in Panama, the property can be passed to heirs, but the inheritance process typically requires a Panamanian succession proceeding (sucesion) to transfer the title cleanly, which can take several months to over a year depending on complexity.
Foreign heirs must provide authenticated death certificates, proof of their relationship to the deceased, and may need to obtain a court order or notarized succession declaration to have the Public Registry transfer the title into their names.
Foreign heirs generally face no specific restrictions when reselling inherited property once the title has been properly transferred to them, meaning they can sell just like any other owner.
The most common inheritance complication foreigners encounter is holding property in their personal name without any estate planning, which forces heirs through the full Panamanian probate process; this can be avoided by holding property through a corporation or private interest foundation with clear succession rules built in.
Can foreigners realistically get a mortgage in Panama in 2026?
Do banks give mortgages to foreigners in Panama in 2026?
As of early 2026, several Panamanian banks offer mortgages to foreigners, with typical loan amounts ranging from $100,000 to over $500,000 (roughly 95,000 to 475,000 EUR), loan-to-value ratios of 60% to 70% for non-residents, and interest rates around 6% to 8% depending on residency status and property type.
The main eligibility requirements banks impose on foreign mortgage applicants include proof of income (typically two years of tax returns and financial statements), bank references, a passport copy, proof of the down payment source, and sometimes a local bank account that has been open for at least 6 months.
You can also read our latest update about mortgage and interest rates in Panama.
Are mortgage approvals harder for non-residents in Panama in 2026?
As of early 2026, mortgage approvals are noticeably harder for non-residents compared to residents, with banks requiring more documentation, offering lower loan-to-value ratios, and sometimes adding cost surcharges.
Non-residents typically receive 60% to 70% LTV (meaning a 30% to 40% down payment of around $60,000 to $120,000 on a $200,000 property, or roughly 57,000 to 114,000 EUR), while residents may qualify for up to 75% to 80% LTV with down payments as low as 20%.
Non-residents must also meet additional conditions that residents do not, such as providing authenticated foreign income documents, potentially paying the FECI surcharge (1% annually) if they lack permanent residency, and sometimes maintaining a local bank account for at least 6 months before applying.
We have a whole document dedicated to mortgages for foreigners in our Panama real estate pack.
Are foreigners protected by the law in Panama during disputes?
Are foreigners legally protected like locals in Panama right now?
Foreigners receive the same formal legal protections as locals in property matters in Panama, as the country's legal framework does not create a separate, weaker tier of rights for non-citizens who own properly titled property.
Foreigners and locals share equal rights to sue for breach of contract, file claims for property defects, register liens, and enforce court judgments, with Panama's Public Registry system providing a reliable record of ownership and encumbrances.
The main legal protection gap foreigners face is not in the law itself, but in the types of property they sometimes buy: those who purchase possession rights (ROP) or unclear coastal properties have much weaker enforcement options than those with clean titled property.
The most important legal safeguard a foreigner should put in place before buying property in Panama is hiring an independent real estate attorney to verify the title at the Public Registry, check for liens and encumbrances, and ensure all contracts are properly documented.
Do courts treat foreigners fairly in property disputes in Panama right now?
Panama's courts generally treat foreigners and locals equally in property disputes, with no systemic legal discrimination against foreign plaintiffs, though outcomes depend heavily on whether the underlying property rights are clear and properly documented.
The typical duration for a foreigner to resolve a property dispute through the courts in Panama ranges from 1 to 3 years for straightforward cases, with legal costs ranging from $5,000 to $20,000 or more (roughly 4,700 to 19,000 EUR) depending on complexity and attorney fees.
The most common type of property dispute foreigners bring to court in Panama involves title disputes or claims related to possession rights (ROP) properties, boundary disagreements, or developer failures to deliver as promised.
Alternative dispute resolution options exist in Panama, including mediation and arbitration, which can be faster and less expensive than court proceedings, especially if your purchase contract includes an arbitration clause.
We cover all these things in our list of risks and pitfalls people face when buying property in Panama.
What do foreigners say after buying in Panama in 2026?
Do foreigners feel treated differently during buying in Panama right now?
Based on structured expat surveys and our own client feedback, roughly 20% to 30% of foreigners report feeling treated differently during the property buying process in Panama, though this is more often about compliance friction than outright discrimination.
The most commonly reported way foreigners feel treated differently is through heavier documentation requests, longer bank processing times, and more intensive source-of-funds questioning, which are driven by Panama's AML/KYC regulations rather than personal bias.
The most commonly reported positive experience foreigners have is the helpfulness of English-speaking real estate agents and attorneys in expat-heavy areas like Panama City, Coronado, and Boquete, where the buying process has been streamlined for international clients.
Find more real-life feedbacks in our our pack covering the property buying process in Panama.
Do foreigners overpay compared to locals in Panama in 2026?
As of early 2026, foreigners who buy without deep local market knowledge typically overpay by 5% to 15% compared to well-advised local buyers for similar properties, which on a $300,000 condo in Punta Pacifica could mean $15,000 to $45,000 extra (roughly 14,000 to 43,000 EUR).
The main reason foreigners end up paying more in Panama is not a "foreigner tax" but their tendency to shop exclusively in heavily marketed, English-language channels and turnkey-ready properties in neighborhoods like Punta Pacifica, Costa del Este, and Casco Viejo, where pricing already reflects international buyer expectations.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Panama, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Panama Constitution (Official Text) | The country's highest legal document, published by an official government channel. | We used it to confirm the core rule that foreigners can own property but cannot buy within 10 km of international borders. We relied on it whenever stating legal restrictions. |
| U.S. State Department Investment Climate Statement 2025 | A regularly updated, high-standard government report summarizing legal protections and risks. | We used it to verify that Panama has a reliable recording system, that possession rights are risky, and to reality-check claims about foreign ownership. We treat it as a neutral triangulation source. |
| Public Registry of Panama Manual | An official institutional document explaining how registrations and filings work. | We used it to explain why title registration matters and why checking the registry is essential. We also used it to support the "buy titled property" message. |
| Law 129 of 2020 (Beneficial Owners Registry) | The legislature-hosted publication of the enacted beneficial ownership law. | We used it to explain why buying through a company is no longer an anonymity play and why banks require extensive documentation from foreigners. |
| Law 23 of 2015 (AML/KYC Framework) | A government-hosted copy of the foundational compliance law administered by the MEF. | We used it to explain why foreign buyers face extra friction (source-of-funds checks, due diligence) even when ownership rights are equal to locals. |
| Superintendencia de Bancos de Panama | The official banking supervisor's statistics portal for interest rates and lending data. | We used it to ground our mortgage rate discussion in official reporting and to avoid relying on informal "blog" rate claims. |
| Banco General Mortgage Page | A major Panamanian bank stating its terms and legal add-ons publicly. | We used it to confirm that non-resident foreigners may pay the FECI surcharge (1%) in certain situations, showing how residency affects borrowing costs. |
| Scotiabank Panama Non-Residents Outline | A bank-issued term sheet specifically for non-resident borrowers. | We used it to confirm that non-resident mortgage lending is a formal product category and to inform our documentation checklist for foreign buyers. |
| World Justice Project Rule of Law Index 2025 | A widely used, methodologically documented global governance index based on surveys and expert input. | We used it to contextualize how protected foreigners will feel in disputes, providing a neutral benchmark alongside legal texts. |
| InterNations Expat Insider 2025 | One of the largest recurring expat surveys with consistent methodology across countries. | We used it for the "what do foreigners say" section as structured sentiment data about expat life in Panama, triangulated with legal and financial sources. |